Multiple Choice
Use the information below to answer the following questions.
Fact 13.3.3
Suppose that Roots' marginal cost of a jacket is a constant $125.00 and the total fixed cost at one of its stores is $1,500 a day.This store sells 20 jackets a day,which is its profit-maximizing number of jackets.Then the stores nearby start to advertise their jackets.The Roots store now spends $2,000 a day advertising its jackets,and its profit-maximizing number of jackets sold jumps to 70 a day.
-Refer to Fact 13.3.3.Before the advertising begins,the average total cost of a jacket sold in this store is
A) $200.00.
B) $175.00.
C) $150.00.
D) $125.00.
E) $100.00.
Correct Answer:

Verified
Correct Answer:
Verified
Q29: The existence of a large number of
Q30: When comparing perfect competition and monopolistic competition,we
Q31: The purpose of calculating the concentration ratio
Q32: Use the figure below to answer the
Q33: Which of the following goods is best
Q35: ACME,Inc.operates in a market structure in which
Q36: Markup<br>A)does not exist in monopoly.<br>B)does not exist
Q37: Which one of the following is true
Q38: Selling costs<br>A)are variable costs that increase total
Q39: In monopolistic competition<br>A)firms can collude.<br>B)each firm has